The Tax Reform Act of 1976 requires the IRS to report annually on data for individual income tax returns reporting incomes of $200,000 or more. According to the latest report, there were more than 4.2 million such filers for 2010 income tax returns. They represent 3% of all individual tax returns.
This income group has increased by about 8% over the previous year. This income group has increased annually since the IRS started making these reports in 1977.
A revenue ruling is the Commissioner’s “official interpretation of the interpretation of the law” and generally is binding on revenue agents and other IRS officials. Taxpayers generally may rely on published revenue rulings in determining the tax treatment of their own transactions that arise out of similar facts and circumstances.